I am newly connected to the internet at our university and in order to do this, we had to run this setup process that would enable the university internet on our computers. I get the feeling that all of my websites visited and posts are logged and stuff and I don't like having no privacy for making forum posts, emails, and web surfing... Is there any way to mask or encrypt what I do on the web?

The 'setup process' might've been to put you on their proxy so that you can access the internet through their university.

If its wireless, it might've been to install the WEP settings for you, so that they don't directly have to tell anyone the wireless security settings.

I don't think a university would take much time in monitoring their student's 'forum activity' or such. Perhaps its a security measure if it does go through some logging measure, to prevent security issues, and only certain words throw up a red flag. I'm on a college computer myself right now so I won't say such words, but you get the idea.